[Editorial Note] National Policy Planning Committee Weighs Maintaining the Financial Services Commission

"Since the current chair of the National Assembly’s Political Affairs Committee is Yoon Hanhong from the People Power Party, we cannot ignore the legislative environment."

Cho Seungrae, spokesperson for the National Policy Planning Committee, made this statement during a regular briefing on the 24th. This comment offers insight into why the National Policy Planning Committee, which is taking the lead in major organizational reforms including those of the Ministry of Economy and Finance and the Financial Services Commission, has entered a period of careful consideration ahead of announcing its reorganization plans.

Initially, the committee sought to restructure by separating the Budget Office from the Ministry of Economy and Finance and transferring domestic financial policy authority from the Financial Services Commission to the Ministry of Economy and Finance. This plan was included in President Lee Jaemyung’s campaign pledges. The reform of the financial authorities appeared to be proceeding as promised, without significant obstacles. However, as the process neared its conclusion, the argument for maintaining the Financial Services Commission gained traction, deepening the committee’s deliberations.

This is a different trend from the reorganization of the prosecution, which is the most closely watched aspect of the Lee Jaemyung administration’s restructuring. From the beginning, both the presidential office and the ruling party’s policy planners spoke with one voice in favor of reorganizing the prosecution. Public opinion also strongly supported these efforts, creating a favorable environment for securing momentum for prosecution reform. Many in political circles believe that the ruling party’s target of achieving results before Chuseok is likely to become a reality.

In contrast, reforming the economic and financial ministries is far more complex. It requires not only amending the Government Organization Act but also revising multiple laws, including the Banking Act. Progress can only be made with cooperation from the opposition. In particular, the fact that the chair of the Political Affairs Committee, which has jurisdiction over the relevant bills, is from the People Power Party, serves as a significant variable.

Depending on the committee chair’s intentions, the time required for negotiations could be extended indefinitely. This means that two or three times more effort will be needed to bridge differences and keep to the reform schedule. The National Policy Planning Committee is currently focused on gathering opinions from various sectors, evaluating the practical benefits of reorganizing the financial authorities, and developing a more efficient reform plan.

At the beginning of the committee’s launch, the Financial Services Commission was unsettled by the strong signals of a possible “dismantling” of the commission. However, expectations for the commission’s continued existence have been growing. Recently, President Lee Jaemyung publicly praised the commission’s policies on supporting small business owners and curbing household debt. For the commission, this was an opportunity to demonstrate its value and effectiveness.

From the perspective of the Lee Jaemyung administration, it is only natural to want to reorganize government bodies to reflect a new governing philosophy. However, just because there is a desire to act does not mean that everything will proceed according to the political timeline. Building consensus on practicality and effectiveness is just as important as the outcome of the reorganization itself. At this point, it is crucial to consider carefully whether the reorganization will truly be an "improvement" or risk becoming a "deterioration."